Official figures have shown just how dramatically the expatriate population of the United Arab Emirates has grown in recent years.

Data released by the UAE Ministry of Economy on Wednesday reveal that out of a total population of 4.48 million in 2007, 3.62 million were expatriates and only 864,000 were UAE nationals, up from 3.39 million foreigners and 839,000 nationals in 2006.

Abu Dhabi was the most populated emirate in the UAE at the end of 2007, with a population of just under 1.5 million, followed by the rapidly expanding business and financial hub of Dubai, with 1.48 million people, and Sharjah, with a little under 882,000 people.

In 2008, the local population is forecast to grow by 3.2% and the expat community by 6.8%, meaning that expatriates are expected to account for more than 81% of the total population.

The rapid growth in the expat population in the UAE has been attributed to its phenomenal economic growth rate as the government seeks to diversify an economy which until recently was wholly dependent on oil.

The emirates also offer considerable tax advantages compared with the expats' home states in Europe, North America and the Indian sub-continent. In Dubai for example, there are no personal taxes other than import duties and residential taxes based on rental value.

There is also an absence of corporate and other business taxes in the UAE (except for the banking sector), and various free zones in Dubai, which have combined to help to drive in a tidal wave of foreign investment and increase the need for foreign technical expertise.

According to the government report, per capita income in the UAE was AED76,600 (USD20,850) in 2006. But by 2007, this had doubled to AED162,000 driven by GDP growth of 17%. Depite the global economic turmoil, a similar level of growth is predicted for 2008 and beyond, largely on account of high oil prices.

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